Public Service Announcement, Update: Beware of the Million-Dollar IRS Phone Scam

Uncle Sam isn’t really a pirate . . .

My husband recently returned from India and called my attention to an article in the April 4, 2014 edition of India Abroad:“Over 20,000 taxpayers victims of IRS phone scam.”Searching online, I found the same information in an article in the March 21, 2014 edition of the China Securities Journal,“IRS watchdog: Phone scam is largest ever,”which reportedthat US taxpayers have been bilked out of more than $1 million through this frighteningly effective phone scam.

The . . . IRS usually first contacts people by mail – not by phone – about unpaid taxes. And the IRS won’t ask for payment using a pre-paid debit card or wire transfer. The IRS also won’t ask for a credit card number over the phone.

The callers who commit this fraud often:

– Use common names and fake IRS badge numbers.
– Know the last four digits of the victim’s Social Security Number.
– Make caller ID information appear as if the IRS is calling.
– Send bogus IRS e-mails to support their scam.
– Call a second time claiming to be the police or department of motor vehicles, and the caller ID again supports their claim.

If you get a call from someone claiming to be with the IRS asking for a payment, here’s what to do:

– If you owe Federal taxes, or think you might owe taxes, hang up and call the IRS at 800-829-1040. IRS workers can help you with your payment questions.
– If you don’t owe taxes, call and report the incident to TIGTA at 800-366-4484.
– You can also file a complaint with the Federal Trade Commission at http://www.FTC.gov. Add “IRS Telephone Scam” to the comments in your complaint.

Don’t let yourself be intimidated by these callers. And keep your checkbook closed until you’re sure it’s the “real” Uncle Sam contacting you–whatever you may think on April 15, he’s not really a pirate.